- The toy industry in recent years has grown accustomed to weathering an annual crisis that threatens the holiday season.
- Every year Christmas still arrives, with lots of toys under Christmas trees.
- But this year’s challenges are likely to be more disruptive, resulting in price increases, and shortages of popular toys.
- It will limit the ability of retailers to use toys as holiday loss leaders to draw shoppers.
A recent Forbes news source by Joan Verdon says that shipping Container Crisis Could Derail Holiday Toy Sales.
July is the right month for shipping toys
In July, the time when toy companies typically start shipping their holiday toys to retailers, prices for shipping containers increased by as much as 500%, according to industry group The Toy Association.
Toy makers say they are being charged $20,000 to $25,000 for 40-foot containers that previously would have cost $3,000 to $4,000.
The situation has become so dire that The Toy Association, has urged federal lawmakers and the Federal Maritime Commission to take immediate action to address the shipping crisis.
The hunt for container space favors Hasbro, Mattel and big toy manufacturers with the cash and the clout to navigate supply chain challenges, at the expense of small toy companies that risk being shut out during their most important sales period of the year.
What does the container shortage mean?
The container shortage will mean hot toys will sell out faster, and retailers may not be able to restock them in December, as they have in past years.
They also won’t be able to offer deep discounts on hot toys to lure consumers to their stores in hopes of selling them lots of non-toy items as well.
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Source: Forbes
